OTT revenues to grow

Over-the-top subscription services are expected to generate cumulative revenues of US$32 billion (€22 billion) over the next five years, a higher sum than that generated by pay-per-title services, according to forecasts from IMS Research.

IMS Research’s latest report on Over-the-Top Video – Service Delivery and Business Models says that homes viewing only free OTT videos accounted for 77% share of the total OTT market at the end of 2010, and this will decline to 69% by the end of 2016. However, OTT revenues will grow by 32% a year over the next five years, according to principal analyst and report author Anna Hunt.

While internet-based OTT service providers will continue to dominate the market, their share will decline from 90% to 69% by 2016, according to the report, with TV-connected devices growing faster to account for 25% of global revenues by 2016, up from 9.35 in 2010.